The sacked boss of kids stationery juggernaut Smiggle could lose about $4 million in shares if investors in Solomon Lew’s Premier Investments vote in favour of a unanimous recommendation by the board.
Premier in early September revealed it had dumped John Cheston as chief executive of Smiggle after he was allegedly found to have engaged in serious misconduct and breach of his employment.
Details of the alleged misconduct were not revealed and Mr Cheston has denied any wrongdoing.
In a notice of its annual general meeting on Monday, Premier’s board unanimously recommended investors vote in favour of cancelling 113,550 shares issued to Mr Cheston in October 2023 and May.
The shares were part of a long-term incentive scheme and could be cancelled if the board deemed an executive to have acted “fraudulently or dishonestly or is in breach of his or her obligations”.
The sacking in September came just three months after Mr Cheston was poached by rival billionaire retail magnate Brett Blundy to run global jewellery chain Lovisa.
It wasn’t the first time Mr Cheston has had a bitter departure as CEO of a major retailer, having led men’s and women’s clothing brand Country Road for less than three months before leaving in 2010.
After the termination of his employment, Mr Cheston sued the company in Federal Court, with Country Road eventually agreeing to pay him $1.1m in a settlement.
Premier shares closed down 0.3 per cent to $33.39 on Monday.
https://thewest.com.au/business/retail/sacked-smiggle-boss-john-cheston-facing-loss-of-4m-in-stocks-c-16715074
